Asset protection is the use of smart, legal strategies to protect your assets. Most people have insurance to protect against risk, but no insurance covers every possible scenario — and you may not know which cover you need for the risks you actually face.
If you have assets in your name, you could be at risk. Protecting assets against creditors and litigation is an increasingly common concern, and effective strategies let you keep growing your wealth rather than defending it.
What this covers
- What the safest asset protection strategies are
- The risk of holding assets with no structure in place
- What a testamentary trust is, and how it minimises tax
- Whether you still need protection if you hold insurance
- Separating risk-carrying activity from wealth-holding entities
- Reviewing existing structures for weak points
How to effectively protect your assets
It can take a lifetime to grow your wealth and asset base, but only a moment in time for it to be lost and taken away. Asset protection is the use of smart, legal strategies to protect your assets. Most people have insurance to protect against risk, but no insurance can cover every possible scenario, and you may not know which insurances are needed to protect against the unique risks you face.
- What are the safest asset protection strategies?
- What is the risk without having asset protection strategies in place?
- What is a testamentary trust?
- How can a testamentary trust be utilised to minimise tax?
- Do I still need asset protection if I have insurance?
Think asset protection doesn’t apply to you? Think again.
If you have assets in your name, you could be at risk. Protecting assets against frivolous creditors and lawsuits is increasingly becoming a common concern. To avoid significant losses, it is important to have reliable and effective asset protection strategies so you can continue to grow your wealth and achieve your financial objectives.
Advantages and disadvantages of testamentary trusts
Testamentary trusts offer many benefits, particularly when it comes to asset protection. Their unique structure, which separates control and benefit, ensures that assets are safeguarded from legal actions and beneficiaries who may make poor financial decisions. By keeping the estate intact, they help protect your estate from potential bankruptcy and court orders — but the advantages should be weighed against the potential disadvantages.
Why asset protection is essential for property investors
For first home buyers and property investors, asset protection is a crucial yet often overlooked aspect of financial planning. It involves strategies and legal structures designed to shield your assets from potential risks such as creditors, lawsuits, or unforeseen financial difficulties.
CGT consequences of separation and divorce
With approximately one in three marriages ending in divorce, understanding the CGT implications of separation has become increasingly important. The ATO provides specific rollover provisions that can defer CGT liabilities when assets are transferred between separating parties, but these come with critical conditions that must be met.
Our range of investment structures
Our investment structures suit a variety of asset classes and investment requirements:
- Trusts for individual property investors
- Tailored structures and agreements for joint venture property developers
- Flexible business ownership and operating structures for small business owners, medical professionals, family-operated businesses with commercial property, and larger businesses with multiple partners
- Enterprise structures for entrepreneurial individuals with multiple business entities and complex portfolios including property and shares
Further reading
Guides you can download
Practical PDF guides prepared by our advisers — free to download and keep.
